Medlab Clinical will try to sell its business after appointing external consultants

Listed biotech company Medlab Clinical will hit the sale block after its board handed over the reins to external consultants.

Medlab Clinical is looking for a buyer.

Medlab Clinical has appointed external consultants to run the business and likely sell it off, just months after a bid to list on the US Nasdaq index was binned.

The Sydney-based biotechnology company’s shares were suspended from trade on February 27 and on Monday it told the ASX that Hall Chadwick had been engaged as external consultants.

They would “assist the current directors of the company with an informal workout and restructure of the company’s financial affairs’’, the ASX was told.

“The company is currently operating in a care and maintenance capacity whilst the directors devise and implement a corporate restructure plan.

“Prior to the suspension, two directors of the company have resigned from the board and in the last week the company has retrenched 78 per cent of the workforce and is currently operating with skeleton staff for the purpose of the restructure.

“The restructuring process will involve dealing with current and new investors, as well as any

interested parties to achieve the ongoing success and future of the company which will ensure the best outcome for all stakeholders.

“The business and assets of the company will be advertised for sale, either via direct acquisition or via proposals from potential joint venture parties.

“This process is expected to continue for six to eight weeks and updates will be provided periodically.’’

Medlab said Hall Chadwick had already been in discussions with a number of domestic and international parties who were interested in potential joint venture opportunities.

Medlab specialises in the application of NanoCelle drug delivery technology to existing and new pharmaceuticals.

The company had been seeking to raise new funds via a dual listing on the Nasdaq in the US, telling the ASX in late December it would look to raise as much as $US8.1m via the move.

By the time the company released its quarterly report on January 20 however, it had discovered that US capital markets were “simply not responsive’’ to a healthcare raising at the time.

The company had $2.75m at the end of the December quarter, with operating cash burn of $2.84m for that quarter.

The shares last traded at $6.60.

Originally published as Medlab Clinical will try to sell its business after appointing external consultants